USD/JPY: buying with the target near 125.85 high

Barclays Capital made fundamental forecast for USD/JPY suggesting to buy with the target to be near 125.85. Let's evaluate this forecast concerning the technical point of view.

USD/JPY: possible bullish breakout. The price is located to be above 100 period SMA (100 SMA) and above 200 period SMA (200 SMA) in the primary bullish market condition with the secondary ranging within the following key support/resistance levels:

• 125.85 resistance level located above 100 SMA/200 SMA on bullish area of the chart, and
  
• 116.13 support level near 100 SMA on the border between the primary bearish and the primary bullish trend.

Ascending triangle pattern was formed by the price to be crossed for the bullish trend to be continuing.

• if the price breaks 125.85 resistance so the bullish trend will be continuing
  
• if the price breaks 116.13 support level so the reversal of the price movement from the primary bullish to the primary bearish trend may be started;
  
• if not so the price will be moved within the channel.